In local markets on Thursday, gold prices increased as the strong dollar and rising US Treasury bond rates kept the ounce stable on the global stock market.
This occurred as markets awaited US economic data and Federal Reserve policymaker speeches for new policy signals.
claimed Imbabi, Executive Director of the “i-Sagha,” claimed gold prices jumped by EGP 5 in local markets compared to yesterday’s trade, when a gram of 21-karat gold cost EGP 3115 and an ounce 2336.
According to him, 24-karat gold cost EGP 3560, 18-karat EGP 2670, 14-karat EGP 2077, and the gold pound EGP 24920.
However, gold fell EGP 30 yesterday. 21-karat traded at 3140 and finished at 3,110. On the worldwide stock market, the ounce climbed $22, trading from $2358 to $2336.
Imbabi said gold prices on the global stock market are still under pressure due to fading expectations that the US Federal Reserve would lower rates this year.
He noted that US Federal Reserve members’ stern comments and concerns over inflation reduced the likelihood of decreasing interest rates, strengthening the currency and US Treasury bond yields.
Imbabi noted that central bank purchases and the growth of geopolitical tensions in the Middle East still position gold as a safe haven amid conflicts and economic crises, which stimulates demand.
Minneapolis Federal Reserve Bank President Neel Kashkari’s comments, which did not rule out hiking interest rates again, also affected market sentiment and raised bond yields.
Weak demand for this week’s $183 billion auction of 2-, 5-, and 7-year US Treasury notes drove rates up considerably over the previous two days amid investors’ concerns about inflation.
On Thursday, markets will await US GDP, weekly jobless claims, house sales, and Federal Reserve announcements.
The core personal consumption expenditures index, a bank-preferred inflation indicator, will also be examined to gauge consumer spending over a wide variety of goods and services.
The study, issued Friday, may influence Federal Reserve policy.